By: Harris, Watson S.B. No. 582
(Lewis)
A BILL TO BE ENTITLED
AN ACT
relating to service of process on certain domestic and foreign
entities for the collection of delinquent property taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.257, Business Organizations Code, is
amended to read as follows:
Sec. 5.257. SERVICE OF PROCESS BY POLITICAL SUBDIVISION.
(a) A process, notice, or demand required or permitted by law to be
served by a political subdivision of this state or by a person,
including another political subdivision or an attorney, acting on
behalf of a political subdivision in connection with the collection
of a delinquent ad valorem tax may be served on a domestic or
foreign corporation whose corporate privileges are forfeited under
Section 171.251, Tax Code, a domestic or foreign limited liability
company whose right to transact business in this state is forfeited
under Section 171.2515, Tax Code, or a corporation or limited
liability company that is involuntarily terminated under Chapter
11[,] or whose registration is revoked under Chapter 9 by delivery
of the process, notice, or demand to any officer or director of the
corporation or manager or member of the limited liability company,
as listed in the most recent records of the secretary of state.
(b) If the officers or directors of a corporation or the
managers or members of the limited liability company are unknown or
cannot be found, service on the corporation or limited liability
company may be made in the same manner as service is made on unknown
shareholders under law.
(c) Notwithstanding any disability or reinstatement of a
corporation or limited liability company, service of process under
this section is sufficient for a judgment against the corporation
or limited liability company or a judgment in rem against any
property to which the corporation or limited liability company
holds title.
SECTION 2. Section 17.091, Civil Practice and Remedies
Code, is amended by amending Subsection (a) and adding Subsection
(f) to read as follows:
(a) In a suit to collect delinquent property taxes by the
state or a political subdivision of the state in which a [person who
is a] defendant in the suit is a nonresident, the secretary of state
is an agent for service of process on that defendant if the
defendant owns, has, or claims an interest in or a lien against
property in this state that is the subject of the suit. This
section applies regardless of whether the defendant has resided in
this state.
(f) In this section, "nonresident" includes:
(1) an individual who is not a resident of this state;
and
(2) a foreign corporation, foreign unincorporated
association, foreign general partnership, foreign limited
partnership, foreign limited liability company, foreign
professional association, foreign business trust, foreign
cooperative, or foreign real estate investment trust that is not
required to appoint a registered agent for service of process in
this state under the provisions of the Business Organizations Code.
SECTION 3. Section 5.257, Business Organizations Code, as
amended by this Act, and Section 17.091, Civil Practice and
Remedies Code, as amended by this Act, apply only to service of
process issued on or after the effective date of this Act. Service
of process issued before the effective date of this Act is governed
by the law as it existed immediately before the effective date of
this Act, and that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2011.